Bismarck Tribune - North Dakota News - New North Dakota refinery would benefit state

New North Dakota refinery would benefit state

Jan 19, 2008 - 08:05:07 CST

By KENTON ONSTAD
Parshall
and SHIRLEY MEYER
Dickinson

With highly successful new developments in North Dakota oil production, it makes good sense to explore all options regarding a new refinery here. We have formed a task force to do so.

Currently, North Dakota produces more oil than it refines — over twice, in fact. There is only one refinery in the state, located in Mandan. Keeping more of this resource here could create many positive opportunities for our state.

One possible option is that the state could invest in such a venture. This refinery could be fully state-vested or built as a private-public partnership. North Dakota has a very successful state-owned bank and mill. In this time of new North Dakota oil discovery and high national energy demands, a state-invested refinery could have similar results.

In addition, we are looking at more options. Further incentives for a fully private refinery like the Mandan facility will be analyzed, too.

During the last harvest season, a fuel shortage plagued many of our farmers. At that time, North Dakotans were paying the highest fuel prices in the continental United States. Another oil refinery here could have helped the situation.

Presently, our state is seeing frequent new oil discoveries. Drilling rigs have been popping up all across western North Dakota. Experts have said the Bakken shale formation holds tremendous amounts of petroleum. Also, the Williston Basin is only 30 to 40 percent developed, compared with Texas.

North Dakota will have tremendous future opportunities to provide forms of energy that will drive our economy. There has not been a domestic refinery built in nearly 30 years. A new North Dakota refinery would help reduce America’s dependence on foreign energy. Currently, our country imports two-thirds of its energy.

With the highly successful new developments in North Dakota oil production, discussion about a new North Dakota oil refinery just makes good sense. This facility could benefit our state and country. Our task force will look at all options regarding this venture.

(Both Onstad and Meyer are Democrats and state representatives. — Editor)

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Comments

nick wrote on May 6, 2008 9:42 AM:

" What a great idea. Why are we now giving this oil to the oil companies, who pay no taxes, and then gouge us at the pumps? Are we stupid? Bush is an oil man. I understand why he does it. But why do you defend him? You are not rich.

I love reading right wing talking points. They pitch "free markets", even when it means costing them 5 times more, but they want illegal's picking our fruit because they don't want to pay any more for their fruits and veggies.

They want to outsource our military when Blackwater soldiers cost 5 times what a army guy costs the US Taxpayers, yet they don't want their taxes to go up.

Someone needs to teach Republcans that when the government increases spending, it raises their taxes. Just because Bush hasn't sent them the bill, doesn't mean the bill isn't out there. And it is collecting interest. "

An economic conservative wrote on Jan 19, 2008 8:42 PM:

" To economic conservative, just go on believing that we can’t be more conservative, it is the typical spoiled American viewpoint. You want business as usual or as it once was. You are right about us running out of oil. Conserving now, will slow down the time the last gallon of gasoline is sold, giving us precious time to come up with alternatives to moving ourselves around. Building a refinery that would bankrupt our state so the average North Dakotan or American can live the life of waste that most do, is not the answer. "

NotTheirIdea wrote on Jan 19, 2008 8:16 PM:

" What kills me, is these 2 dems are acting like they have this wonderful idea! How many times has this idea been thrown around over the years? Anytime there is an oil boom. I'm not for a STATE owned oil refinery...but I am for the state working with the 2 developers already looking into 2 new refineries in ND...the one up in Williston, and the one near Makoti on the Ft. Berthold reservation. Leave these devolopments to the private sector...the state already has enough state employees for its size. If the state builds this 1billion dollar plus project...they had better be prepared to pay the union wages for the state workers who will work there...and then the rest of the state employees will want bigger wages too! "

To economic conservative wrote on Jan 19, 2008 5:27 PM:

" Wake up! There is no way we can conserve our way out of a growing world demand. "

An economic conservative wrote on Jan 19, 2008 10:55 AM:

" Sir Richard Branson, the flamboyant entrepreneur and owner of Virgin Airways always jokes, " If you want to be a millionaire start out with a billion and buy an airline." I believe North Dakota should take his advice regarding the idea of a state owned refinery. Let publicly held companies take the risk of success or failure. Let the experts run the refinery business. This poorly thought out venture into socialism may sound good to the average Joe on the street but none of us can afford failure in what is a multi-billion dollar business. If North Dakota wants to end up in the Poor House, build a refinery. No new refineries have been built since 1976; those we have are running flat out to keep up with demand. Part of the reason for the lack of new construction is due to very tight environmental restrictions. Perhaps a better idea would be for North Dakotans to reduce their oil consumption. More fuel-efficient automobiles are available and more are being built. Using mass transit, driving more carefully, jackrabbit starts, high speeds, all consume more gasoline and are all good fuel conserving starting points for all North Dakotans. If the idea of a state operated refinery that makes it possible for North Dakotans and whoever else purchases the product simply a plan, that will allow us to continue our wasteful and sloppy habits of consumption, then we should build a state operated refinery! We will deserve the financial ruin that will happen to our state. All of us who went through World War II remember ration books; it is only a matter of time when we will be rationing gasoline. The real solution is cutting back on consumption. "

PO3 wrote on Jan 19, 2008 10:20 AM:

" If after serious studies of what a refinery would do to help North Dakota is found to be feasible I'm for it. Environmental issues need to be dealt with to. Show us the truth and if its sound policy I'm sure most North Dakotans would back such an endeavour. "

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